US Consumer Inflation Falls To 2.4% In March, But Tariff Hikes Cloud Economic Outlook

Newly released data revealed Thursday that the United States' inflation saw a notable six-month decline in March. However, the encouraging trend is overshadowed by growing economic uncertainty tied to the U.S.' historic tariff hikes.

The most recent Consumer Price Index report revealed that inflation eased to an annual rate of 2.4% in March, the Bureau of Labor Statistics reported.

On a monthly basis, prices dropped by 0.1% -- the first monthly decline since May 2020 -- following a 0.2% increase in February, CNN reported.

Energy prices also dropped by 2.4% in March, driven primarily by a sharp 6.3% decline in gasoline costs, which outweighed the rises in electricity and natural gas prices.

Even though the news would reflect people in the U.S. would not be witnessing a rise in cost of living, economists warn this could be lowest inflation reading of the year, as president Donald Trump's sweeping tariff measures were expected to raise costs on imports and eventually filter down to consumers through higher retail prices.